Travel Agent GDS Study Finds Ways to Influence Hotel Selection

2011 Global Travel Agent
GDS Media Research Study
Prepared for
December 14, 2011

2011 Global Travel Agent GDS Study
Agenda
Overview
• Objectives
• Methodology
• Travel Agent and Agency Summary
Detailed Findings
• GDS Channel: Performance and Usage
• Economic Conditions Impacting Agent Behavior
• Influencing Agent and Traveler Behavior
• Pricing and Rate Usage
• GDS Advertising Impact
• Questions and Answers
1

Objectives
The primary purpose of this market research study is to measure
travel agent awareness of specific GDS media… promotional
messages. Secondary objectives focus on…
• Evaluating the frequency with which travel agents use GDS
marketing tools.
• Determining how GDS media is used in conjunction with other
materials and information sources available to travel agents.
• Developing a profile of the travel agents and agencies participating
in the survey.
2

Methodology
• TravelClick provided Phoenix Marketing International
(PMI) with a list of global travel agents that subscribe
to one of the four major GDS systems.
• Travel agents from the twenty-five countries listed
(and the United States) responded to the survey.
• An incentive of a $5 Amazon.com gift certificate was
offered to each respondent participating in the study.
In addition, one respondent was randomly chosen
and awarded a $500 Amazon gift certificate.
3
Algeria
Australia
Bangladesh
Belarus
Brazil
Canada
Denmark
France
Germany
Hungary
India
Italy
Kenya
Mexico
Portugal
South Africa
Spain
Sweden
Switzerland
Thailand
Trinidad & Tobago
Tunisia
Ukraine
United Arab Emirates
United Kingdom

Methodology
A total of 495 online surveys representing the four GDS
companies were completed as shown below…
The data in this report has been weighted to reflect the distribution of Amadeus, Galileo, Sabre and Worldspan Global
Distribution Systems. The findings that you will see on the following pages are among Total Travel Agents, Travel Agents
in the Americas, EMEA and Asia/Pacific regions.
4
Americas EMEA Asia/Pacific Total Travel Agents
Amadeus 39 38 11 88
Galileo 72 67 70 209
Sabre 96 15 0 111
Worldspan 74 10 3 87
281 130 84 495
Americas EMEA Asia/Pacific Overall
Number Travel
Agent Interviews
281 130 84 495 Total
StatisticalAccuracy +4.9 points +7.2 points +9.0 points +3.7 points
Confidence Level 90% 90% 90% 90%

Americas EMEA Asia/Pacific
Number Full-time Travel
Agents Employed
6.6 8.2 14.5
Number GDS Terminals 7.5 7.1 9.3
Is most likely to be an
independently owned agency
71% 59% 44%
Average number of years
as a travel agent
23 16 13
Normally work at the
agency site
72% 86% 88%
Travel Agent Summary
The typical travel agency...
5

Americas EMEA Asia/Pacific
Percent
Business/
Leisure
Top-three
Destinations
by Sales
Volume
Average
Sales
Volume
$3.2MM $3.1MM $2.2MM
Travel Agency Summary
The typical travel agency has the following mix of business…
6
Business
40%
Leisure
60%
15%
19%
44%
Canada/Mexico
Europe
USA
Business
46%Leisure
54%
15%
16%
38%
USA
A/P/Australia
Europe
Business
29%
Leisure
71%
13%
19%
47%
USA
Europe
A/P/Australia

The GDS Channel Performance
and Usage
7

20
26
30
35
40
44
49
47 47 46
49
51
53
55
53
46
49
41
50
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
YTD
2011
YE Est
GDS | Historical Performance
Hotel Bookings (in millions)
8
Source: TravelClick eMonitor, Q3 2011.

$2.5
$2.3
US
(InBillions)
$376
$133
$176
$154
$219
$68
$103
$82
$43 $10
$321
$116
$158
$130
$162
$57
$83
$64
$37 $9
UK Germany Canada France Australia Spain Italy China India Greece
(InMillions) 2011 Q3 2010 Q3
GDS | Performance by Country
9
Source: TravelClick eMonitor, Q3 2011.

Reservation Channel Usage in Past Two
Years Among Travel Agents
GDS Platforms
10
Q. Compared to two years ago, would you say that you are using the following reservations channels more, about the same, or less?
Compared to two years ago, 85% of global travel agencies said that they
were using their GDS platform more often or same than in the past.
35%
27%
53%
42%
49%
55%
35%
47%
16% 18%
11% 12%
0%
20%
40%
60%
80%
100%
Total Agencies Americas EMEA Asia/Pacific
Use More Same Use Less

Reservation Channel Usage in Past Two
Years Among Travel Agents
GDS Shopping Displays
11
Q. Compared to two years ago, would you say that you are using the following reservations channels more, about the same, or less?
85% of global travel agencies stated they were using the GDS Shopping
Displays more often or same than in the past.
27% 25% 28% 32%
48% 54%
36%
35%
26%
20%
36% 33%
0%
20%
40%
60%
80%
100%
Use More Same Use Less

Economic Conditions Impacting
Agent Behavior
12

Frequency of Booking Lower Category
Hotels Due to Client Requests
Based on Economic Conditions Around the World
13
Q. Would you say you are doing each of the following more often, less often or about the same?
41% 38%
47%
41%
37% 43% 24% 37%
22% 19%
30%
22%
0%
20%
40%
60%
80%
100%
More Often About the Same Less Often

54% 58%
46% 48%
35%
35%
33%
40%
11% 7%
21%
12%
0%
20%
40%
60%
80%
100%
Frequency of Influencing Clients Hotel Selection
In Search of a Deal Regardless of Whether-or-
Not a Negotiated Rate Exists for Client
14

Frequency of Offering BAR Rates or
Promotional Rates To Customers Who Have
Negotiated Rates at the Time of Booking
15
28% 26%
34%
21%
49% 53% 41%
40%
24% 21% 25%
40%
0%
20%
40%
60%
80%
100%

Influencing Traveler and
Agent Behavior
16

44% 44% 45% 40%
34% 33% 36% 43%
22% 23% 19% 17%
0%
20%
40%
60%
80%
100%
The client relies solely on your advice
Specifies a specific rate / price and allows you to help guide them through which of those properties to choose
Specifies a specific hotel regardless of rate
Percent of Time Client / Travel Agent Select /
Recommend Hotel
When Booking for 1-3 Nights
17
Q. When booking a hotel for 1 - 3 nights, what percentage of the time would you say the client…?
Overall agents influence the traveler’s selection of a hotel 78% of the time

43% 44% 44% 39%
34% 33% 35% 42%
22% 23% 21% 20%
0%
20%
40%
60%
80%
100%
The client relies solely on your advice
Specifies a specific rate / price and allows you to help guide them through which of those properties to choose
Specifies a specific hotel regardless of rate
Percent of Time Client / Travel Agent Select /
Recommend Hotel
When Booking for 4+ Nights
18
Q. When booking a hotel for 4 nights or more, what percentage of the time would you say the client…?
Overall agents influence the traveler’s selection of a hotel 77% of the time

68% 73%
59%
48%
Factors Influencing Decision to
Act on a Promotional Message
Among Those Aware of GDS Promo Messages
Amenities and Offers Gearing Toward the Traveler
19
Q. What factors influence your decision to act on a promotional message.
Two-thirds (68%) of global travel agents indicated that amenities and offers geared
toward the traveler influence their decision to act on a promotional message.

51% 48%
56%
68%
Factors Influencing Decision to
Act on a Promotional Message
Offers Gearing Toward the Travel Agent
20
Q. What factors influence your decision to act on a promotional message.
Half (51%) of global travel agents stated that offers geared toward travel agents
influenced their decision to act on a promotional message.

Creating Value in the GDS
21
Top Travel Agent
Incentives
Travel Agent Value
Recommendations
Top Hotelier Value
Drivers
Agent Rewards Points/Agent Loyalty Programs 69%
Increased Commission (for you personally) 55%
Free Night Stay 52%
Free Breakfast/Meals 83%
Free Internet 71%
Free Upgrade 68%
Free Night Stay 54%
Star Rating/Consumer Review Rating 46%
Free Internet 66%
New Televisions 42%
iPod Docking Stations 20%

Pricing and Rate Usage
22

5% 4% 4%
14%
11% 15%
81% 85% 81%
0%
20%
40%
60%
80%
100%
2011 Survey 2009 Survey 2007 Survey
Not at All/Not Very Somewhat Very
Importance of GDS Offering Rate Parity
23
Q. How important is it to you to know that the GDS can offer rate parity (Very important, somewhat important, not very important, not at all important)?
Historical survey data shows that travel agents across the globe continue to
be virtually unanimous in their belief that GDS systems should offer rate parity.
95% 96% 96%

56%
60%
53%
2011 Survey 2009 Survey 2007 Survey
Percent of Time Offer Clients a Lower Priced
Room When Looking to Book a Corporate
Negotiated Rate
24
Q. When looking to book a corporate negotiated rate hotel, what % of times do you offer clients a lower priced room when you find an alternative hotel
priced lower than a negotiated corporate rate hotel?
On average, over 56% of the time, travel agents will offer their clients a lower
priced room even when booking a corporate negotiated rate.

GDS Advertising:
Awareness & Impact
25

69%
75%
57% 60%
Awareness of GDS Promotional Messages
26
Q. When researching air, hotel or car availability for your clients, do you recall seeing a promotional message at the top of the screen known as
Text Banners, Headlines, Value Alerts?
Seven-out-of-ten global travel agents (69%) are aware of the GDS promotional
messages.

Among Those Aware of
GDS Promo Messages
47% (nearly half) made a North American booking in the past three
months as a result of a promotional message.
44% made a Non-North American booking in the past three months
as a result of a promotional message.
69% of global travel agencies are likely to book a hotel that is shown
in a promotional message during a query of air travel research.
66% request additional information about a specific promotion by
looking at the screen referenced in the promotion.
27

57%
52%
71% 67%
Promotional Messages Steer Travel Agents to
Book Negotiated Rate of Hotel in Promo Message
when Searching for Hotel Negotiated Rates
28
Q. When searching for negotiated rates in a hotel availability list and you see a promotional message for a hotel, does that promotional message
steer you to book the negotiated rate of the hotel in the promo message?
57% of global agencies said YES promotional messages steer them to book that
hotel’s negotiated rate.

9% 7%
17%
5%
83% 88% 71%
77%
8% 5%
11% 17%
0%
20%
40%
60%
80%
100%
Promotional Message Shown at the Bottom or Top of the Screen
Best Available Rate Offered by the Hotel Even if its Not a Negotiated Rate
Only Book a Hotel that has the Negotiated Rate
Option that Best Prompts Booking of Hotel
When Researching Hotel for Negotiated Rates
29
Q. When researching hotel for negotiated rates, which of the following best prompts you to book a hotel?
83% of global travel agencies feel that showing the best available rate offered by the
hotel even is it not a negotiated rate is the best way to get them to book a hotel while
they are researching a hotel.

Details in Display Messages that Lead
to Making a Hotel Booking
Percent Saying “Most Important”
30
Q. What details in a GDS promotional message help lead you to making a hotel booking when you first see the ad?
45% Ensure Promotion Shows a Rate that I Can
Actually Book for the Dates Searching for
17% Ensure Promotion Only Shows the Destination
Searching For
11% Ensure Promotion Shows the Hotel’s GDS
Property ID
13% Ensure Promotion Includes Information on
Amenities, Travel Agent Incentives and Other
Add-ons in Addition to Price
13% Ensure Promotion Offers a Value Greater
the Hotels Standard Available Rates –
Be Competitive
Total Agencies

Questions and Answers
31

If you are interested in learning more about purchasing
GDS Media Advertising for your property, please contact
your local Director of Sales.
If you do not have a Director of Sales, please contact a
TravelClick representative at GDSMedia@travelclick.com.
32
Thank You.

Travel Agent GDS Study Finds Ways to Influence Hotel Selection

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